Boosted by improving credit conditions, Discover Financial (NYSE:DFS) revealed on Thursday it more than doubled its profits in the second quarter to an all-time record.
The card giant said it earned $600 million, or $1.09 a share, last quarter, compared with a profit of $258 million, or 33 cents a share, a year earlier. Analysts had called for EPS of just 75 cents.
Riverwoods-Ill.-based Discover grew its revenue by 4.6% to $1.74 billion, surpassing the Streets view of $1.7 billion.
Underscoring the improving credit environment, Discover said its net charge-offs slid to 4.42% from 7.97% the year earlier and 5.42% the previous quarter.
Provisions for loan losses tumbled to $176 million from $724 million in the 2010 period and $418 million in the first quarter.
Discover said total loans grew by 5% last quarter to $52.5 billion. Total Discover Card volume jumped 11% to $26.93 billion.
Shares of Discover gained 1.31% to $23.90 ahead of Thursdays open. The stock had already been up 27% on the year and nearly 70% from 52 weeks ago.